American Airlines’ ever higher pile of debt may never be paid off, meanwhile investors continue to support Isom, and give management a pass. Why?
But the debt, oh the debt. American Airlines’ current debt load is $36.8bn. Last year, the carrier reported $846MM in net income for the year on $53bn in revenue. For comparison, Delta Air Lines holds $15.6bn in debt, has similar revenue, and made more than $4bn in profit last year. United had slightly lower revenue figures but still earned more than $4bn and holds $25bn in debt (with a former American executive at the helm the last couple of years.
Southwest, the fourth largest carrier in the world’s largest air market had half the revenue (just over $25bn) but holds only $5bn in debt. Southwest was the target of a hostile investor group that reshaped the carrier on the basis of poor performance, and yet the carrier mirrored American’s figures with just over half American’s 2024 profitability.
A great solo travel tip spotted this week on Live and Let's Fly.
